Shares of Gujarat Toolroom remained locked in their 5 percent upper circuit for the second consecutive session on Thursday, January 2, following the company’s announcement of a board meeting to deliberate a potential bonus share issuance in the ratio of 5:1. The announcement was made during Wednesday’s trading session.
The company is scheduled to hold the board meeting on Monday, January 6, 2025, as per a regulatory filing.
In its filing, Gujarat Toolroom stated, “We wish to inform you that a meeting of the Board of Directors of Gujarat Toolroom Limited is scheduled to be held on Monday, January 6, 2025, to consider and approve the proposal for issuance of bonus shares in the ratio of 5:1 (five bonus equity shares for every one equity share) to the eligible equity shareholders of the Company as on the proposed record date by capitalisation of securities premium, subject to the approval of the shareholders of the Company.”
Data from the BSE indicates that this will be the first-ever issuance of bonus shares by the company, marking a significant milestone for its shareholders.
In the previous year, Gujarat Toolroom executed a stock split, reducing the face value of its shares from ₹10 to ₹1, making the stock more accessible to retail investors. Additionally, in October 2024, the company successfully raised ₹50 crore through a Qualified Institutional Placement (QIP) at an issue price of ₹11.50 per share. This fundraising effort drew significant interest from institutional investors, including Zeta Global Funds and Eminence Global Fund PCC Trade Fund, showcasing strong confidence in the company’s future growth prospects.
Stock Price Performance
The stock reached its 5 percent upper circuit at ₹18.08 during intra-day trading today, indicating strong buying momentum. Despite this surge, the stock is still trading at a significant discount of over 60 percent compared to its 52-week high of ₹45.97, recorded in March 2024. However, it has shown a robust recovery, climbing 60 percent from its 52-week low of ₹10.78, touched in August 2024.
While negative returns of over 54 percent in the past year reflect volatility and challenges, the stock’s staggering growth of over 1,200 percent in the last three years underscores its long-term potential. This dramatic rise highlights the company’s strategic initiatives, including its stock split and successful QIP, as catalysts for growth.
With recent positive developments, such as the planned bonus share issuance, investor interest in Gujarat Toolroom appears to be reigniting, adding to the optimism around the stock’s trajectory.
